Global trends to guide the market this week, trading activity of foreign investors: Analyst

Stock markets will be affected by foreign investors’ trading activity and global trends this week, with benchmark stock indices likely to face volatility during scheduled monthly derivative expirations, analysts said. Moreover, factors such as the monsoon season and the progress of Brent crude oil will also influence investor sentiment during the week.

“Sectoral moves are expected this week amid budget buzz. Key factors to watch include the progress of the monsoon, which will be closely monitored for its near-term impact on investor confidence.

“Investors will closely watch not only crude oil prices but also FII (foreign institutional investors) and DII (domestic institutional investors) fund flows,” said Pravesh Gour, senior technical analyst, Swastika Investmart Ltd.

He added that on the global front, economic indicators such as US GDP will be released on June 27.

Ajit Mishra, Senior Vice President, Research, Religare Broking Ltd, said, “Looking ahead, we will continue to remain interested in updates, especially regarding the US budget and global market signals.” He added that volatility could increase due to the expected expiration of derivatives contracts in June. Last week, the BSE benchmark rose 217.13 points (0.28%) and Nifty rose 35.5 points (0.15%). “Overall, the market is likely to remain stable in the near term and consolidate to higher levels. Budget-related segments are likely to remain active,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd.

Shrikant Chouhan, head of equity research at Kotak Securities, said market participants will be watching the further progress of the monsoon.

“Going forward, the focus will gradually shift to the budget and Q1 FY25 earnings,” Chouhan added.